Problem Solving Times Three

BY BARBARA DERSHOWITZ

They’re a triumvirate -- like a heart, a mind and a calculator -- that runs our building," says Ron Webster, president of 50 West 79th Street, a 67-unit cooperative.  "Each of them brings something special to the organization."  He is referring to the three partners who run Tudor Realty Services, Mary Frances Shaughnessy, Anthony Colella and Howard Lazarus, who co-founded the company in 1990.

Shaughnessy has expertise in all aspects of property management and conversion. Prior to founding Tudor Realty, she managed the co-op conversion of seven buildings at Tudor City in the East 40’s.  Colella, a veteran property and project manager and an expert in construction and structural issues, worked as site manager with Shaughnessy during the massive Tudor City conversion.  Lazarus is an attorney and real estate developer/investor with more than two decades of experience in all phases of real estate.

The company’s service-oriented philosophy begins with a policy of returning phone calls promptly.  The firm’s communication policy is clearly articulated to all 24 employees, nine of whom, including the three principals, are hands-on managing agents.

The policy is recognized at the building level. "Tudor Realty is one of the most responsive managing agents I’ve dealt with," says Dennis Mandell, a real estate attorney and president of his 41-unit co-op on East 86th Street.  "With most management companies, you can call and not get called back for 24 hours.  With Tudor Realty, I always get called back quickly."

The, firm, with a portfolio of 45 properties, primarily in Manhattan, manages four of Tudor City’s largest buildings. In addition to full-service management, the company offers sales and rental brokerage through a separate division housed in an independent office.  "We view ourselves as a management company," says Shaughnessy.  "The sales and rental division is only there because our clients asked for it."

The company’s management office is located in a 5,000 square-foot duplex at 25 Tudor City Place, one of the buildings they manage. The reception area is graced with the stained glass windows that identify developer Fred F. French’s utilization of the Tudor style when he created the neighborhood in the 1920s. The interior space, by contrast, is perfectly modern and is the previous home of a design firm that valued a free-flowing traffic pattern which the firm has exploited to the fullest.  The partners share three flow-through offices without walls.  The managing agents work at stations without dividers, each equipped with a computer.

The lower level of the duplex, accessed by a spiral staircase and home to the company’s back office, utilizes specially-designed lighting and glass partitions to emulate the modern airiness upstairs.  The lower-level kitchen is often the site of impromptu conferences over lunch.

Within this atmosphere of sharing and communication, security is a priority.  Property and individual unit files are kept in a locked room.  The company eschews lock box collection in favor of direct receipt of payments.

Tudor Realty’s computer system enables delivery of financial statements complete with reconciled bank statements by the 15th of each month.  "We’ve decided not to offer online PC hook-ups to our properties," says Lazarus.  "First of all, a good hacker can get into any system.  Also, there are many items that need explanation."  The firm has E-mail capabilities that boards can use to communicate with their agents.

Suzanne Fass, president of 140 Nassau Street, a 39-unit loft building in lower Manhattan, is impressed with the firm.  "They were willing to modify financial reports according to the request of our treasurer," she says, adding, "They’ve advised us on mortgage refinancing and on investing the extra cash we pulled out of the refinance, so we’ll have the money to accomplish capital projects.  They’ve prepared budgets for us long before we even thought about the next year.  They’ve been quite responsive to our needs, and willing to handle whatever situations arise."

The firm directs each building’s superintendent to conduct a thorough basement-to-roof evaluation annually.  "We have a checklist for every building," Colella says.  "We push our superintendents to address problems before they exist. We operate under a preventive maintenance mentality."

According to Beatrice Berkowitz, board president at a 799-unit building that is part of Tudor City, "If anything goes wrong in this building, I hear about it from Tudor Realty, not the other way around.  They’re involved in everything, and they’re wonderful in terms of finances, which is a big part of a building our size."

"They’ve stabilized our expenses and run the building much more efficiently than it was run before," says Mary Enright, president of her 39-unit co-op on East 84th Street.  "They helped resolve a longstanding dispute with the sponsor, and just recently arranged for refinancing of our mortgage, which will result in lower monthly debt service payments.  I can’t think of anything they do that needs to be improved."

Tudor Realty has a specific system of internal checks and balances for their own operation and for their clients' security.  A three-tier review process requires that all invoices and disbursements be reviewed and approved by each of the partners at different stages before any checks are issued.  "We have an approved vendors list, " says Shaughnessy, "which includes an interview with Anthony Colella and stipulates absolutely no gifts of any kind."  The company also solicits bids every month for commonly used items, which they buy in bulk for their properties, so there’s no difference in price per item between smaller buildings and larger ones.

Although untouched by the recent industry scandal, Tudor Realty has begun work on a code of ethics.  The company is awaiting input on an industry-wide code promised by the newly-formed Association of Co-op and Condo Managers, of which the principals are members.

Tudor Realty’s growth is deliberately moderated. "Because we’re all so involved with our properties, we can only handle so many new ones," says Shaughnessy."  Every year on our anniversary, we set a goal for the coming year.  For example, our goal this past April was to add ten properties, and as of November, we’ve added seven."

Because the firm’s hierarchical structure precludes promotion for the managing agents, there’s an annual salary review with "handsome raises," according to Shaughnessy.  The firm has created a distinctive corporate culture of teamwork and integrity. E mployee loyalty is engendered by lunchtime togetherness, and by in-house holiday celebrations, summer picnics, and softball parties. "We spend a lot of time together," Shaughnessy says.

When Lazarus, Shaughnessy and Colella are called to a management interview, their unanimous response to properties in need of their hands-on management style is always the same: "We tell all our current and prospective properties, 'Challenge us'," says Lazarus.

The properties do, and, capitalizing on the individual strengths of each partner in the triumvirate, Tudor Realty Services Corp. provides problem-solving times three.

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